Spotify Expresses Interest To Raise $500 Million: WSJ

Headsets
hang in front of a screen displaying a Spotify logo on it, in
ZenicaThomson
Reuters

(Reuters) - Online music streaming service Spotify is working
with Goldman Sachs for a new round of private fundraising which
could potentially put off the initial public offering for another
year, the Wall Street Journal reported, citing people familiar
with the matter.

The company has expressed interest to raise about $500 million in
new financing and investors have heard talks that put the company
valuation at more than $6 billion, the people said.

However, the amount to be raised and valuation are still to be
settled, the Wall Street Journal reported.

Spotify is talking with investors who are known to buy into
companies before a IPO, including mutual fund T. Rowe Price
Group, the report said, citing people familiar with the matter.

The company has indicated its willingness to provide investors
with a "ratchet" provision that will give them a guaranteed
return in the event of an IPO, one person said.

Spotify said it does not comment on rumors.

The company was founded in 2006 by Daniel Ek and Martin
Lorentzon. It provides free on-demand music or ad-free tunes for
paying customers.

Spotify raised speculation of an IPO in August after it
re-advertised a job for a regulatory filings expert.